Correlation Between Athens Water and Admie Holding
Can any of the company-specific risk be diversified away by investing in both Athens Water and Admie Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Athens Water and Admie Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athens Water Supply and Admie Holding SA, you can compare the effects of market volatilities on Athens Water and Admie Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Athens Water with a short position of Admie Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens Water and Admie Holding.
Diversification Opportunities for Athens Water and Admie Holding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athens and Admie is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Athens Water Supply and Admie Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admie Holding SA and Athens Water is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Athens Water Supply are associated (or correlated) with Admie Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admie Holding SA has no effect on the direction of Athens Water i.e., Athens Water and Admie Holding go up and down completely randomly.
Pair Corralation between Athens Water and Admie Holding
Assuming the 90 days trading horizon Athens Water Supply is expected to generate 0.72 times more return on investment than Admie Holding. However, Athens Water Supply is 1.39 times less risky than Admie Holding. It trades about 0.13 of its potential returns per unit of risk. Admie Holding SA is currently generating about 0.01 per unit of risk. If you would invest 562.00 in Athens Water Supply on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Athens Water Supply or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens Water Supply vs. Admie Holding SA
Performance |
| Timeline |
| Athens Water Supply |
| Admie Holding SA |
Athens Water and Admie Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athens Water and Admie Holding
The main advantage of trading using opposite Athens Water and Admie Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens Water position performs unexpectedly, Admie Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Admie Holding will offset losses from the drop in Admie Holding's long position.| Athens Water vs. Hellenic Petroleum SA | Athens Water vs. Mytilineos SA | Athens Water vs. Hellenic Telecommunications Organization | Athens Water vs. Public Power |
| Admie Holding vs. Mytilineos SA | Admie Holding vs. Motor Oil Corinth | Admie Holding vs. Hellenic Petroleum SA | Admie Holding vs. National Bank of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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